For DRS Use Only M M - D D - Y Y Y Y. For January 1 - December 31, 2016, or other taxable year Year Beginning. Check if deceased

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1 Department of Revenue Services State of Connecticut (Rev. 12/16) W Taxpayers must sign declaration on reverse side. Form CT-1040 Connecticut Resident Income Tax Return 2016 CT-1040 For DRS Use Only M M - D D - Y Y Y Y Complete return in blue or black ink only. For January 1 - December 31, 2016, or other taxable year Year Beginning 1 Print your SSN, name, mailing address, and city or town here. Status - Check only one box. Your fi rst name Married filing jointly Your Social Security Number If joint return, spouse s fi rst name Check if deceased Mailing address (number and street, apartment number, suite number, PO Box) Married fi ling separately City, town, or post offi ce (If town is two words, leave a space between the words.) State ZIP code Enter city or town of residence if different from above. Check the appropriate box to identify if you: Head of household Qualifying widow(er) with dependent child Filed Form CT-2210 and checked any boxes on Part 1. M M - D D - Y Y Y Y Enter spouse s name here and SSN below. Spouse s Social Security Number Check if deceased ZIP code and Ending MI Last name (If two last names, insert a space between names.) Suffi x (Jr./Sr.) MI Last name (If two last names, insert a space between names.) Suffi x (Jr./Sr.) Filed Form CT-1040CRC (Attach to the back of the return.) Filed Form CT-8379 (Attach to the front of the return.) M M - D D - Y Y Y Y Filed Form CT-AIT 2 Whole Dollars Only 1. Federal adjusted gross income from federal Form 1040, Line 37; Form 1040A, Line 21; or Form 1040EZ, Line Additions to federal adjusted gross income from Schedule 1, Line Clip check here. Do not staple. Do not send W-2 or 1099 forms. 3. Add Line 1 and Line Subtractions from federal adjusted gross income from Schedule 1, Line Connecticut adjusted gross income: Subtract Line 4 from Line Income tax from tax tables or Tax Calculation Schedule: See instructions, Page Credit for income taxes paid to qualifying jurisdictions from Schedule 2, Line Subtract Line 7 from Line 6. If Line 7 is greater than Line 6, enter Connecticut alternative minimum tax from Form CT Add Line 8 and Line Credit for property taxes paid on your primary residence, motor vehicle, or both: Complete and attach Schedule 3 on Page 4 or your credit will be disallowed Subtract Line 11 from Line 10. If less than zero, enter Total allowable credits from Schedule CT-IT Credit, Part I, Line Connecticut income tax: Subtract Line 13 from Line 12. If less than zero, enter Individual use tax from Schedule 4, Line 69: If no tax is due, enter Add Line 14 and Line Due date: April 15, Attach a copy of all applicable schedules and forms to this return. For a faster refund, file your return electronically at and choose direct deposit.

2 Form CT-1040 Page 2 of 4 Your Social Security Number (Rev. 12/16) W Enter amount from Line Column A - Employer s federal ID No. from Box b of W-2, or payer s federal ID No. from Form 1099 Column B - Connecticut wages, tips, etc. Column C - Connecticut income tax withheld W-2 and a..00 Information Only enter 18b..00 information from your W-2 18c..00 and 1099 forms if Connecticut 18d..00 income tax was withheld. 18e a. 18b. 18c. 18d. 18e f. Additional CT withholding from Supplemental Schedule CT-1040WH 18f Total Connecticut income tax withheld: Add amounts in Column C and enter here. You must complete Columns A, B, and C or your withholding will be disallowed b. Routing number 25d. Will this refund go to a bank account outside the U.S.? Yes If you do not elect direct deposit, a refund check will be issued and processing may be delayed. 26. Tax due: If Line 17 is more than Line 21, subtract Line 21 from Line If late: Enter penalty. Multiply Line 26 by 10% (.10) If late: Enter interest. Multiply Line 26 by number of months or fraction of a month late, then by 1% (.01) Interest on underpayment of estimated tax from Form CT-2210: See instructions, Page Total amount due: Add Lines 26 through Sign Here Keep a copy of this return for your records. 19. All 2016 estimated tax payments and any overpayments applied from a prior year Payments made with Form CT-1040 EXT (Request for extension of time to file) a. Connecticut earned income tax credit: From Schedule CT-EITC, Line a b. Claim of right credit: From Form CT-1040CRC, Line 6. Attach Form CT-1040CRC to the back of this return. 20b Total payments: Add Lines 18, 19, 20, 20a, and 20b Overpayment: If Line 21 is more than Line 17, subtract Line 17 from Line Amount of Line 22 overpayment you want applied to your 2017 estimated tax CHET contribution from Schedule CT-CHET, Line 4. Attach Schedule CT-CHET to the back of this return a. Total contributions of refund to designated charities from Schedule 5, Line 70 24a Refund: Subtract Lines 23, 24, and 24a from Line 22. For direct deposit, complete Lines 25a, 25b, and 25c. Direct deposit is not available to fi rst-time fi lers a. Checking Savings 25c. Account number Declaration: I declare under penalty of law that I have examined this return and all accompanying schedules and statements, including reporting and payment of any use tax due, and, to the best of my knowledge and belief, it is true, complete, and correct. I understand the penalty for willfully delivering a false return or document to DRS is a fine of not more than $5,000, or imprisonment for not more than five years, or both. The declaration of a paid preparer other than the taxpayer is based on all information of which the preparer has any knowledge. Your signature Date (MMDDYYYY) Home/cell telephone number Your address Spouse s signature (if joint return) Date (MMDDYYYY) Daytime telephone number Paid preparer s signature Date (MMDDYYYY) Telephone number Preparer s SSN or PTIN Firm s Federal Employer Identifi cation Number (FEIN) Firm s name, address, and ZIP code Third Party Designee - Complete the following to authorize DRS to contact another person about this return. Designee s name Telephone number Personal identification number (PIN) Complete applicable schedules on Pages 3 and 4 and send all four pages of the return to DRS.

3 Form CT-1040 Page 3 of 4 (Rev. 12/16) W Your Social Security Number Schedule 1 - Modifications to Federal Adjusted Gross Income See instructions, Page 23. Enter all items as positive numbers. 31. Interest on state and local government obligations other than Connecticut Mutual fund exempt-interest dividends from non-connecticut state or municipal government obligations Taxable amount of lump-sum distributions from qualifi ed plans not included in federal adjusted gross income Benefi ciary s share of Connecticut fi duciary adjustment: Enter only if greater than zero Loss on sale of Connecticut state and local government bonds Domestic production activity deduction from federal Form 1040, Line Other - specify Total additions: Add Lines 31 through 37. Enter here and on Line Interest on U.S. government obligations Exempt dividends from certain qualifying mutual funds derived from U.S. government obligations Social Security benefi t adjustment: See Social Security Benefi t Adjustment Worksheet, Page Refunds of state and local income taxes Tier 1 and Tier 2 railroad retirement benefi ts and supplemental annuities Military retirement pay % of income received from the Connecticut teacher s retirement system Benefi ciary s share of Connecticut fi duciary adjustment: Enter only if less than zero Gain on sale of Connecticut state and local government bonds Connecticut Higher Education Trust (CHET) contributions Enter CHET account number: Do not add spaces or dashes. 49. Other - specify: Do not include out of state income Total subtractions: Add Lines 39 through 49. Enter here and on Line Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions You must attach a copy of your return fi led with the qualifying jurisdiction(s) or your credit will be disallowed. See instructions, Page Modifi ed Connecticut adjusted gross income Column A Column B Name Code Name Code 52. Enter qualifying jurisdiction s name and two-letter code Non-Connecticut income included on Line 51 and reported on a qualifying jurisdiction s income tax return from Schedule 2 Worksheet Divide Line 53 by Line 51. May not exceed Income tax liability. Subtract Line 11 from Line Multiply Line 54 by Line Income tax paid to a qualifying jurisdiction Enter the lesser of Line 56 or Line Total credit: Add Line 58, all columns. Enter here and on Line Complete applicable schedules on Page 4 and send all four pages of the return to DRS.

4 Form CT-1040 Page 4 of 4 (Rev. 12/16) W Your Social Security Number Schedule 3 - Property Tax Credit See instructions, Page 30. Qualifying Property Name of Description of Property Date(s) Paid Amount Paid Connecticut Tax If primary residence, enter street address. If (MMDDYYYY) Town or District motor vehicle, enter year, make, and model. 60. Primary Residence Auto Auto 2 - Married fi ling jointly or qualifying widow(er) only Total property tax paid: Add Lines 60, 61, and Maximum property tax credit allowed Enter the lesser of Line 63 or Line Enter the decimal amount for your filing status and Connecticut AGI from the Property Tax Credit Table exactly as it appears on Page 31. If zero, enter the amount from Line 65 on Line Multiply Line 65 by Line Subtract Line 67 from Line 65. Enter here and on Line 11. Attach Schedule 3 to your return or your credit will be disallowed Failure to report and pay use tax is subject to as much as a $5,000 fine, imprisonment for as much as 5 years, or both. Schedule 4 - Individual Use Tax Do you owe use tax for online or other purchases where you paid no sales tax? See instructions, Page 33. Complete the Connecticut Individual Use Tax Worksheet on Page 32 to calculate your use tax liability. 69a. Total use tax due at 1%: From Connecticut Individual Use Tax Worksheet, Section A, Column 7 69a b. Total use tax due at 6.35%: From Connecticut Individual Use Tax Worksheet, Section B, Column 7 69b c. Total use tax due at 7.75%: From Connecticut Individual Use Tax Worksheet, Section C, Column 7 69c Individual use tax: Add Lines 69a through 69c. If no use tax is due, you must enter 0. Enter here and on Line Schedule 5 - Contributions to Designated Charities - See more information on Page 6. 70a. AIDS Research 70a b. Organ Transplant 70b c. Endangered Species/Wildlife 70c d. Breast Cancer Research 70d e. Safety Net Services 70e f. Military Relief 70f g. CHET Baby Scholar 70g Total Contributions: Add Lines 70a through 70g. Enter amount here and on Line 24a Complete and send all four pages of the return to DRS. Use the correct mailing address for returns with a payment or requesting a refund. For all tax forms with payment: Department of Revenue Services PO Box 2977 Hartford CT For refunds and all other tax forms without payment: Department of Revenue Services PO Box 2976 Hartford CT Make your check payable to: Commissioner of Revenue Services To ensure proper posting, write your SSN(s) (optional) and 2016 Form CT-1040 on your check.

5 2016 FORM CT-1040 This booklet contains: Form CT-1040 Schedule CT-EITC Schedule CT-CHET Tax Tables Tax Calculation Schedule Use Tax Information Index epartment of evenue ervices DRS Tax information is available on the DRS website at Connecticut Resident Income Tax Return and Instructions Important 2016 Connecticut Income Tax Topics: File Electronically File electronically... it is fast and free! Visit to electronically file. See Taxpayer Service Center, on Page 54. Refund Options Direct Deposit Choose direct deposit for the fastest way to receive your Connecticut income tax refund. Direct deposit is not available for first time Connecticut filers. See Refund Options, Direct Deposit, on Page 3. Paper Check If you do not elect or qualify for direct deposit, your refund will be issued by paper check. Processing a paper check may increase the time it takes for you to receive your refund. Connecticut Earned Income Tax Credit Full-year residents may be eligible to claim the Connecticut earned income tax credit (CT EITC). See CT EITC on Page 5. Protecting Taxpayer Information and Refunds Security of taxpayer information and financial transactions is a top priority for DRS. This year steps have been taken to better protect your personal information and assure that refunds are delivered to their rightful owners. See Protecting Taxpayer Security, on Page 15. File early to protect your refund from identity thieves.

6 We may not like taxes, but it is the way we all contribute to an even better Connecticut. Thank you for doing your part! Commissioner Kevin B. Sullivan What s New Personal Tax Credit for Filers The Connecticut adjusted gross income (AGI) beginning threshold for calculating the personal tax credit for single filers has increased to $15,000 for the taxable year Personal Exemption for Filers The personal exemption for individuals whose filing status is single has increased to $15,000 for the 2016 taxable year. There is a $1,000 reduction in the personal tax exemption for every $1,000 of Connecticut adjusted gross income over $30,000. Property Tax Credit Limitation For taxable year 2016, the maximum income tax credit for taxes paid to Connecticut municipalities is $200. The phase-out threshold increases to $49,500 for single taxpayers. The phase-out thresholds for the remaining filing statuses remain at the 2015 levels. Earned Income Tax Credit The scheduled increase in the earned income tax credit for Connecticut resident individuals is delayed. The earned income tax credit in effect for 2015 (27.5%) will remain in effect for the 2016 taxable year. The scheduled increase will resume in taxable year Income Tax Exemption for Teacher Pensions For taxable years beginning on or after January 1, 2016, as long as you properly include it in gross income for federal income tax purposes, when determining your Connecticut adjusted gross income, you are allowed a subtraction modification from federal adjusted gross income of 25% of pension payments received from the Connecticut teacher s retirement system. For taxable year beginning January 1, 2017, and each taxable year thereafter, the subtraction modification will be 50%. and Paying Electronically Most Connecticut taxpayers may use the DRS Taxpayer Service Center (TSC) to file their Connecticut income tax return at Electronically filing and paying your taxes is easy and accurate. It provides you with confirmation of receipt and reduces the possibility of errors. While some taxpayers may be reluctant to make electronic payments for security reasons, we want to assure you that our electronic funds transfer is safe and secure. Angel Investor Tax Credit Effective for taxable years beginning on or after January 1, 2016, an angel investor may sell, assign, or transfer all or part of the Angel Investor Tax Credit to another taxpayer one time. Additionally, an angel investor can continue to seek this tax credit through Connecticut Innovations, Inc., until June 30, The program was previously scheduled to sunset on June 30, The new Form CT-AIT, Angel Investor Tax Credit must be completed when claiming an Angel Investor Tax Credit when the credit was bought, assigned, or transferred. Timely Filed Returns April 18, 2017 The 2016 Connecticut income tax return (and payments) will be considered timely if filed on Tuesday, April 18, In 2017, the due date for filing a Connecticut income tax return (April 15) falls on a Saturday. The next business day is Monday, April 17, which is a legal holiday in the District of Columbia (Emancipation Day). Therefore, for filing purposes the next business day is Tuesday, April 18, Page 2

7 Pass-through Entities Sales Factor Apportionment and Market-Based Sourcing: Effective for taxable years beginning on or after January 1, 2017, a business, trade, profession, or occupation carried on in Connecticut and outside of Connecticut must apportion its income using a single factor gross income percentage. These multistate businesses are required to utilize market-based sourcing for purposes of determining their gross income percentage. Businesses must source receipts from the sales of services and intangible property on a market basis. Receipts from the rental, lease, or license of tangible personal property are sourced according to the location of the property. Receipts from the sale of tangible personal property continue to be sourced based upon the location of the purchaser. Businesses that cannot reasonably determine where their receipts should be sourced under the statutory rules may petition the Commissioner to use an alternate method that reasonably approximates such sourcing rules. Sales of intangible property and tangible personal property are excluded from the apportionment calculation (numerator and denominator) if such property is not held by the company primarily for sale to customers in the ordinary course of the company s trade or business. Net income from the sale, rental, lease, or license of real property is allocated to the location of the real property, and the gross receipts from these transactions are excluded from the apportionment calculation. DRS is preparing guidance regarding market-based sourcing and will post this guidance on its website as soon as it becomes available. REFUND OPTIONS Internal Revenue Code section 457A Reporting Requirements of Deferred Compensation The Tax Extenders and Alternative Minimum Tax Relief Act of 2008 enacted Internal Revenue Code section 457A. This section applies to deferred compensation paid to any service provider under a nonqualified deferred compensation plan that is attributable to services performed after December 31, Deferred compensation earned before January 1, 2009 must be reported on or before taxable year This requirement includes management companies providing services to offshore hedge funds. Pursuant to Conn. Gen. Stat (a), compensation from nonqualified deferred compensation plans attributable to services performed within Connecticut, including compensation required to be included in federal gross income under section 457A of the Internal Revenue Code, is subject to Connecticut income tax. Thus, if you are a service provider to whom section 457A applies, you must report such income as Connecticut sourced. Consult your tax advisor for detailed information on the application of section 457A of the Internal Revenue Code. Direct Deposit The fastest way to get your refund is to file your return electronically and elect direct deposit. Choosing direct deposit allows the money to go directly into your bank account; it eliminates the possibility of the refund being lost, stolen or returned as undeliverable; and it saves tax dollars by costing the government less. Make your direct deposit successful by: Confirming your account number and routing number with your financial institution and entering them clearly on your tax return; Entering the direct deposit information separately for both your federal and state electronically filed returns; and Printing your software-prepared paper return only after you have entered the direct deposit information into the program. Some financial institutions do not allow a joint refund to be deposited into an individual account. In an effort to reduce fraud, direct deposit is not available to first-time Connecticut income tax filers. Paper Check If you do not elect or qualify for direct deposit, a refund check will be issued and processing may be delayed. DRS recommends that taxpayers who are not first time Connecticut income tax filers choose direct deposit... the most reliable and fastest way to receive your refund. Page 3

8 Q & A About the Connecticut Individual Use Tax 1. What is use tax? Connecticut taxpayers owe use tax on purchases of taxable goods or services when Connecticut sales tax is not collected at the time of sale. Most often, this results from purchases made online or out-of-state. Together, sales and use taxes assure that taxable purchases of goods and services used in Connecticut are treated equally and fairly. 2. Who pays use tax? If Connecticut sales tax is not paid to the retailer at the time of purchase, Connecticut law requires that the purchaser pay use tax directly to the DRS. 3. On what kinds of goods or services must I pay use tax? You must pay use tax on taxable goods whether purchased, leased or rented, and taxable services. Taxable goods include: furniture, jewelry, automobiles, appliances, cameras, computers, and computer software. Taxable services include: repair services to your television, motor vehicle, or computer; landscaping services for your home; and reupholstering services for your household furniture. 4. Are there exemptions from the use tax? Yes. Generally, any purchase or lease of goods or services exempted from Connecticut sales tax is also exempt from Connecticut use tax. Some examples are newspapers, magazines by subscription, Internet access services, and repair and maintenance services to vessels. 5. Do I owe Connecticut use tax on all my outof-state purchases of goods that are taxable in Connecticut? No. If all the goods purchased and brought into Connecticut at one time total $25 or less, you do not have to pay Connecticut use tax but the $25 exemption does not apply to goods shipped or mailed to you. Generally, if you purchase taxable goods from mail order companies, over the Internet or at an outof-state location and had those goods shipped to Connecticut or brought back into Connecticut for use in Connecticut and did not pay Connecticut sales tax, you must pay the Connecticut use tax. 6. What are the use tax rates? Use tax rates are the same as sales tax rates. The general rate is 6.35% for purchases of taxable goods or services. The rate on computer and data processing services is 1%. However, the sales tax rate on certain items of tangible personal property is 7.75%. (See Schedule 4, Individual Use Tax, on Page 33.) 7. When must individuals pay use tax? You must pay use tax no later than April 15 for purchases made during the preceding calendar year (January - December). Your use tax liability may be reported either on Form OP-186, Form CT-1040, Form CT-1040NR/PY, or Form CT-1040X. If you are not required to file a Connecticut income tax return, you must fi le and pay your use tax liability using Form OP-186 no later than April 15. You may fi le one Form OP-186 for the entire year or you may fi le several returns throughout the year. If you are engaged in a trade or business, you must register with DRS for business use tax and report purchases made in connection with your trade or business on Form OS-114, Sales and Use Tax Return. 8. Are there penalties and interest for not paying the use tax? Yes. The penalty is 10% of the tax due. Interest is charged at the rate of 1% per month from the due date of the tax return. There are also criminal sanctions for willful failure to fi le a tax return. When you sign an annual income tax return, you are legally declaring the truthfulness, completeness, and correctness of all information including the section for use tax payment. 9. How does an individual calculate their use tax liability? Calculate the use tax by multiplying the total cost of the taxable goods or services purchased, including separately stated charges such as shipping and handling, by the applicable sales tax rate (1%, 6.35%, or 7.75%). See Informational Publication 2016(19), Q&A on the Connecticut Individual Use Tax. IP 2016(19) Page 4

9 10. What if I buy taxable goods or services in another state and the vendor charges sales tax for the other state? If goods or services are purchased for use in Connecticut and the tax paid in the other state is less than the Connecticut tax, you must report and pay Connecticut use tax equal to the difference between the Connecticut tax and the tax paid to the other state. 11. What if I do not report and pay the use tax I owe? You or your preparer must sign and declare that your income tax filing is true, complete, and correct. That includes calculating and reporting on Line 15 all purchases of goods or services, whether in Connecticut or from outside the state, on which Connecticut sales tax was due but not paid. Failure to report use tax due on Line 15 and include that amount in the total amount due on Line 30 may subject you to a penalty of up to $5,000, imprisonment for up to 5 years, or both. Total Purchases Subject to Use Tax Sample Use Tax Table Use Tax Due at: 6.35% 7.75% $25 $ , , , , , , , , , , Total Purchases Subject to Use Tax Use Tax Due at: 6.35% 7.75% $2, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , When filing your return, don t forget the Connecticut Earned Income Tax Credit. To qualify for the Connecticut Earned Income Tax Credit (CT EITC), you must be a full-year Connecticut resident. Part-year residents and nonresidents with Connecticut sourced income do not qualify for the CT EITC and must file Form CT-1040NR/PY. Qualified taxpayers claim the CT EITC by completing Schedule CT-EITC, Connecticut Earned Income Tax Credit (included in this book). Schedule CT-EITC must be attached to Form CT-1040 (or Form CT-1040X) or the claim for credit will not be reviewed. DRS EITC Website The CT EITC is equal to 27.5% of the amount of the federal earned income credit claimed and allowed. See Schedule CT-EITC - Connecticut Earned Income Tax Credit, on Page 34. Connecticut taxpayers may obtain help filing Schedule CT-EITC by visiting or calling Infoline 211 for information on reputable and free tax filing assistance. See the back cover for more Connecticut tax information. Page 5

10 Connecticut Organ Donor ( ) Give the gift of hope by registering to become an organ and tissue donor. Information about organ donation and various organ donor programs is available from the following websites. Donate Life Connecticut United Network for Organ Sharing (UNOS) Organ Donation LifeChoice Donor Services National Marrow Donor Program Be The Match Registry New England Organ Bank Below is a list of charities for which you may use your tax return to contribute all or a portion of your refund. Enter your total contributions on Form CT-1040, Connecticut Resident Income Tax Return, Schedule 5, Line 70. Your contribution is irrevocable. To contribute directly, send your contribution to the address shown below. Designated Charity: Mailing Address: Make checks payable to: Aids Research Education Fund Breast Cancer Research and Education Fund CHET Baby Scholars Fund Endangered Species, Natural Area Preserves, and Watchable Wildlife Fund Military Relief Fund Organ Transplant Fund Safety Net Services Fund Page 6 Contributions to Designated Charities Assists research, education, and community service programs related to Acquired Immune Deficiency Syndrome (AIDS). Assists research, education, and community service programs related to breast cancer. Provides contributions of up to $250 for CHET college savings accounts opened for children under age one or newly adopted. Helps preserve, protect, and manage Connecticut s endangered plants and animals, wildlife and their habitats. Makes grants to the immediate family members of service members domiciled in Connecticut for essential goods and services when military service creates family financial hardship. Assists Connecticut residents in paying for the unmet medical and ancillary needs of organ transplant candidates and recipients. Protects the children of families who are no longer eligible for public assistance benefits. Department of Public Health - HIV Prevention Program MS #11APV PO Box Hartford CT Department of Public Health - Community Health and Prevention Section MS #11 CCS PO Box Hartford CT Office of the State Treasurer CHET, 7th Floor 55 Elm Street Hartford, CT Department of Energy & Environmental Protection Bureau of Administration Financial Management 79 Elm Street Hartford CT Military Department, Military Relief Fund Fiscal Office 360 Broad St Hartford CT Department of Social Services Accounts Receivable 55 Farmington Ave Hartford CT Department of Social Services Accounts Receivable 55 Farmington Ave Hartford CT Treasurer, State of Connecticut/AIDS Fund Treasurer, State of Connecticut/Breast Cancer Fund Treasurer, State of Connecticut/CHET Baby Scholars DEEP-Endangered Species/ Wildlife Fund Treasurer, State of Connecticut/Military Relief Fund Commissioner of Social Services/Organ Transplant Fund Commissioner of Social Services/Safety Net Fund

11 General Information Tax Assistance DRS is ready to help you get answers to your Connecticut tax questions. Visit the DRS website at or call (Connecticut calls outside the Greater Hartford calling area only) or (from anywhere) during business hours, Monday through Friday, 8:30 a.m. to 4:30 p.m. For walk-in assistance, refer to the back cover for a list of DRS offices. If you visit, be sure to bring: Copy 2 of your federal Forms W-2 and any other forms showing Connecticut income tax withholding; Your Social Security Number (SSN) card, photo identification, and proof of qualifying property tax payments if you are claiming a property tax credit; and Your completed federal income tax return. Forms and Publications Visit the DRS website at to download and print Connecticut tax forms and publications anytime. Connecticut Form 1099-G If you itemize your deductions for federal income tax purposes and wish to obtain your Connecticut Form 1099-G information, you may do so by visiting select For Individuals and select Get Form 1099-G. DRS will not mail paper copies of the Connecticut Form 1099-G. Important Reminders Be sure you have received all your federal W-2 and 1099 forms before filing your Connecticut income tax return. Generally, you receive the forms on or before January 31. If you receive an additional federal Form W-2 or 1099 after filing your Connecticut income tax return, you may be required to file Form CT-1040X, Amended Connecticut Income Tax Return for Individuals. See Amended Returns, on Page 38. Most taxpayers qualify to electronically file their Connecticut income tax return. See the Connecticut Income Tax Return Electronically, on Page 8. You must use blue or black ink to complete your paper return. Complete and send all four pages of your return. If you do not provide DRS with all the completed pages of your return or do not provide all required information, the processing of your return will be delayed. Do not send Forms W-2, Forms 1099, or Schedules CT K-1 with your Connecticut income tax return. Complete Columns A, B, and C of Section 3 of your return. DRS will disallow your Connecticut withholding if you fail to complete all columns. Enter your name, mailing address, your SSN or ITIN, and the name and SSN or ITIN for your spouse (if filing a joint return), and attach all required schedules or forms. Check the correct filing status on your return. Sign your return. If you and your spouse are filing jointly, both of you must sign. Have your paid preparer sign the return and enter the preparer s Federal Employer Identification Number (FEIN) in the space provided. Check the box next to the deceased taxpayer s SSN if you are an executor, administrator, or spouse filing a return for a deceased taxpayer. Check the box on the first page of your return if you are filing Form CT-1040CRC, Claim of Right Credit. Check the box on the first page of your return if you are filing Form CT-8379, Nonobligated Spouse Claim. See Nonobligated Spouse, on Page 15. If you filed joint estimated tax payments but elect or are required to file separate income tax returns, both you and your spouse must file your income tax returns at the same time. No refund will be processed until both Connecticut returns are received. Use the correct DRS mailing address on the envelope when filing your paper return. One address is for all tax forms with payment. The other address is for refunds and all other tax forms without payment. See Mailing Addresses for Form CT-1040, on Page 12. If you qualify to claim the Connecticut Earned Income Tax Credit, complete and attach Schedule CT-EITC, Connecticut Earned Income Tax Credit. Elect direct deposit, by completing Lines 25a through 25c, for the fastest way to receive your refund. This option is not available to first-time filers. If you do not elect direct deposit, a refund check will be issued and refund processing may be delayed. Check the box on the first page of your return if you are filing Form CT-AIT, Angel Investor Tax Credit. Complete Form CT-AIT if you are selling, assigning, or transferring the credit. You must file a paper Form CT-1040 when you complete Form CT-AIT. See Angel Investor Tax Credit, on Page 17. QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. DRS Website DRS Telephone DRS Telephone Page 7

12 Who Must File a Connecticut Resident Return You must file a Connecticut resident income tax return if you were a resident for the entire year and any of the following is true for the 2016 taxable year: You had Connecticut income tax withheld; You made estimated tax payments to Connecticut or a payment with Form CT-1040 EXT; You meet the Gross Income Test; You had a federal alternative minimum tax liability; or You are claiming the Connecticut earned income tax credit (CT EITC). If none of the above apply, do not file a Connecticut resident income tax return. Gross income means all income you received in the form of money, goods, property, services not exempt from federal income tax, and any additions to income required to be reported on Form CT-1040, Schedule 1. Gross income includes income from all sources within Connecticut and outside of Connecticut. Gross income includes but is not limited to: Compensation for services, including wages, fees, commissions, taxable fringe benefits, and similar items; Gross income from a business; Capital gains; Interest and dividends; Gross rental income; Gambling winnings; Alimony; Taxable pensions and annuities; Prizes and awards; Your share of income from partnerships, S corporations, estates, or trusts; IRA distributions; Unemployment compensation; Federally taxable Social Security benefits; and Federally taxable disability benefits. Gross Income Test You must file a Connecticut income tax return if your gross income for the 2016 taxable year exceeds: $12,000 and you are married filing separately; $15,000 and you are filing single; $19,000 and you are filing head of household; or $24,000 and you are married filing jointly or qualifying widow(er) with dependent child. The following examples explain the gross income test for a Connecticut resident: QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. Page 8 DRS Website TSC Website Example 1: Your only income is from a sole proprietorship and you file federal Form 1040 reporting the following on Schedule C: Gross Income $100,000 Expenses ($92,000) Net Income $8,000 Because the gross income of $100,000 exceeds the minimum requirement, you must file a Connecticut income tax return. Example 2: You received $8,000 in federally nontaxable Social Security benefits and $11,000 in interest income. Since nontaxable Social Security benefits are not included in gross income, you do not have to file a Connecticut income tax return unless Connecticut tax was withheld or estimated tax payments were made. Example 3: You are a single individual. You received $15,000 in wage income and $1,000 in federally-exempt interest from California state bonds. Your gross income (federal adjusted gross income with any additions to income from Form CT-1040, Schedule 1, Line 31, Interest on state and local government obligations other than Connecticut) is $16,000. Therefore, you must file a Connecticut income tax return. the Connecticut Income Tax Return Electronically Most Connecticut taxpayers may use the DRS Taxpayer Service Center (TSC) to file their Connecticut income tax return at Electronically filing and paying your taxes is easy and accurate. It provides you with confirmation of receipt and reduces the possibility of errors. While some taxpayers may be reluctant to make electronic payments for security reasons, we want to assure you that our electronic funds transfer is safe and secure. You may electronically file your Connecticut income tax return through the TSC if all of the following are true: You filed a Connecticut income tax return in the last three years; or you have never filed a Connecticut income tax return, but you have a valid Connecticut driver s license or Connecticut non-driver ID; Your filing status is the same as the last return DRS has on file, or, if your filing status changed since your last filing, your new filing status is displayed in the drop-down menu. If your new filing status is not displayed in the drop-down menu, visit the DRS website at select For Individuals and select E-Services for information on other e-filing options; You are not filing Form CT-1040CRC, Claim of Right Credit or Form CT-AIT, Angel Investor Tax Credit; and You have no more than ten Forms W-2 or 1099 that show Connecticut income tax withheld. Do not send a paper copy of your electronically filed return with the payment. Send only Form CT-1040V, 2016 Connecticut Electronic Payment Voucher, with your payment.

13 Relief From Joint Liability In general, if you and your spouse file a joint income tax return, you are both responsible for paying the full amount of tax, interest, and penalties due on your joint return. However, in very limited and specific cases, relief may be granted if you believe all or any part of the amount due should be paid only by your spouse. You may request consideration by filing Form CT-8857, Request for Innocent Spouse Relief (And Separation of Liability and Equitable Relief). The statute of limitations for requesting innocent spouse relief or separation of liability is two years from the date on which the DRS begins collection activities against you. For equitable relief requests, the statute of limitations applicable to federal equitable relief requests will be applicable to Connecticut equitable relief requests. This statute of limitations is applicable to all open equitable relief requests. See Policy Statement 2016(2), Innocent Spouse Relief, Separation of Liability, and Equitable Relief. Title 19 Recipients If you are a Title 19 recipient, you must file a Connecticut income tax return if you meet the requirements for Who Must File a Connecticut Resident Return on Page 8. However, if you do not have funds to pay your Connecticut income tax, complete Form CT-19IT, Title 19 Status Release, and attach it to the front of your Connecticut income tax return if the following two conditions apply: You were a Title 19 recipient during 2016; and Medicaid assisted in the payment of your long-term care in a nursing or convalescent home during Completing this form authorizes DRS to verify your Title 19 status for 2016 with the Department of Social Services. Deceased Taxpayers An executor, administrator, or surviving spouse must file a Connecticut income tax return, for that portion of the year before the taxpayer s death, for a taxpayer who died during the year if the requirements for Who Must File a Connecticut Resident Return are met. The executor, administrator, or surviving spouse must check the box next to the deceased taxpayer s SSN on the front page of the return; sign for the deceased taxpayer on the signature line; and indicate the date of death. QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. PS 2016(2) Generally, the Connecticut and federal filing status must be the same. A surviving spouse may file a joint Connecticut income tax return if the surviving spouse filed a joint federal income tax return. Write filing as surviving spouse in the deceased spouse s signature line on the return. If both spouses died in 2016, their legal representative must file a final return. Claiming a Refund for a Deceased Taxpayer If you are a surviving spouse filing jointly with your deceased spouse, you may claim the refund on the jointly-filed return. If you are a court-appointed representative, file the return and attach a copy of the certificate that shows your appointment. All other filers requesting the deceased taxpayer s refund must file the return and attach federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer, to the front of the return. Refund claims for deceased taxpayers should be made as soon as possible during the annual filing period. Under federal law, personal Social Security Numbers are not protected after death and will be disclosed by the Social Security Administration upon request. This is a major cause of fraudulent refund claims filed and paid before the legitimate taxpayer s claim is filed. Income received by the estate of the decedent for the portion of the year after the decedent s death, and for succeeding taxable years until the estate is closed, must be reported each year on Form CT-1041, Connecticut Income Tax Return for Trusts and Estates. Special Information for Nonresident Aliens If you are a nonresident alien, you must file a Connecticut income tax return if you meet the requirements of Who Must File a Connecticut Resident Return, on Page 8. In determining whether you meet the gross income test, you must take into account any income not subject to federal income tax under an income tax treaty between the United States and the country of which you are a citizen or resident. Income tax treaty provisions are disregarded for Connecticut income tax purposes. Any treaty income you report on federal Form 1040NR or Form 1040NR-EZ and not subject to federal income tax must be added to your federal adjusted gross income. See Form CT-1040, Schedule 1, Line 37, or Form CT-1040NR/PY, Schedule 1, Line 39. If you do not have and are not eligible for a Social Security Number (SSN), you must obtain an Individual Taxpayer Identification Number (ITIN) from the IRS and enter it in the space provided for an SSN. You must have applied for and been issued an ITIN before you file your income tax return. However, if you have not received your ITIN by April 15, file your return without the ITIN, enter Applied For or NRA in the SSN field, pay the tax due, and attach a copy of federal Form W-7, Application for IRS Individual Taxpayer Identification Number. DRS will contact you upon receipt of your return and will hold your return until you receive your ITIN and you forward the information to us. DRS cannot process your return until we receive the ITIN. Page 9

14 A married nonresident alien may not file a joint Connecticut income tax return unless the nonresident alien is married to a citizen or resident of the United States and they have made an election to file a joint federal income tax return and they do, in fact, file a joint federal income tax return. Any married individual filing federal Form 1040NR or federal Form 1040NR-EZ is not eligible to file a joint federal income tax return or a joint Connecticut income tax return and must file a Connecticut income tax return as filing separately. Resident, Part-Year Resident, or Nonresident The following terms are used in this section: Domicile (permanent legal residence) is the place you intend to have as your permanent home. It is the place you intend to return to whenever you are away. You can have only one domicile although you may have more than one place to live. Your domicile does not change until you move to a new location and definitely intend to make your permanent home there. If you move to a new location but intend to stay there only for a limited time (no matter how long), your domicile does not change. This also applies if you are working in a foreign country. Permanent place of abode is a residence (a building or structure where a person can live) that you permanently maintain, whether or not you own it, and generally includes a residence owned by or leased to your spouse. A place of abode is not permanent if it is maintained only during a temporary stay for the accomplishment of a particular purpose. Resident You are a resident for the 2016 taxable year if: Connecticut was your domicile (permanent legal residence) for the entire 2016 taxable year; or You maintained a permanent place of abode in Connecticut during the entire 2016 taxable year and spent a total of more than 183 days in Connecticut during the 2016 taxable year. Nonresident aliens who meet either of these conditions are considered Connecticut residents even if federal Form 1040NR-EZ or federal Form 1040NR is filed for federal income tax purposes. See also Special Rules for Married Individuals on Page 17 and Special Information for Nonresident Aliens on Page 9. If you are a resident and you meet the requirements for Who Must File a Connecticut Resident Return for the 2016 taxable year, you must file Form CT Part-Year Resident You are a part-year resident for the 2016 taxable year if you changed your permanent legal residence by moving into or out of Connecticut during the 2016 taxable year. If you are a part-year resident, you may not elect to be treated as a resident individual. Page 10 If you are a part-year resident and you meet the requirements for Who Must File Form CT-1040NR/PY for the 2016 taxable year, you must file Form CT-1040NR/PY, Connecticut Nonresident and Part-Year Resident Income Tax Return. Nonresident You are a nonresident for the 2016 taxable year if you are neither a resident nor a part-year resident for the 2016 taxable year. If you are a nonresident and you meet the requirements for Who Must File Form CT-1040NR/PY for the 2016 taxable year, you must file Form CT-1040NR/PY. If you meet all of the conditions in Group A or Group B, you may be treated as a nonresident for 2016 even if your domicile was Connecticut. Group A 1. You did not maintain a permanent place of abode in Connecticut for the entire 2016 taxable year; 2. You maintained a permanent place of abode outside of Connecticut for the entire 2016 taxable year; and 3. You spent not more than 30 days in the aggregate in Connecticut during the 2016 taxable year. Group B 1. You were in a foreign country for at least 450 days during any period of 548 consecutive days; 2. During this period of 548 consecutive days, you did not spend more than 90 days in Connecticut and you did not maintain a permanent place of abode in Connecticut at which your spouse (unless legally separated) or minor children spent more than 90 days; and 3. During the nonresident portion of the taxable year in which the 548-day period begins, and during the nonresident portion of the taxable year in which the 548-day period ends, you were present in Connecticut for no more than the number of days that bears the same ratio to 90 as the number of days in the portion of the taxable year bears to 548. See the calculation below: Number of days in the nonresident portion 548 x 90 = See Special Notice 2000(17), 2000 Legislation Affecting the Connecticut Income Tax. Maximum days allowed in Connecticut Military Personnel Requirements Military personnel and their spouses who claim Connecticut as a residence but are stationed elsewhere are subject to Connecticut income tax. If you enlisted in the military service as a Connecticut resident and have not established a new domicile (permanent legal residence) elsewhere, you are required to file a resident income tax return unless you meet all of the conditions in Group A or Group B for being treated as a nonresident. See Resident, Part-Year Resident, or Nonresident, above.

15 If your permanent home (domicile) was outside Connecticut when you entered the military, you do not become a Connecticut resident because you are stationed and live in Connecticut. As a nonresident, your military pay is not subject to Connecticut income tax. However, income you receive from Connecticut sources while you are a nonresident may be subject to Connecticut income tax. See the instructions for a Connecticut nonresident contained in the instruction booklet for Form CT-1040NR/PY. See Example, below. Example: Jill is a resident of Florida. She enlisted in the Navy in Florida and was stationed in Groton, Connecticut. She earned $38,000 in military pay. If Jill had no other income... Since Jill resided and enlisted in Florida, she is considered a resident of Florida and does not have to file a Connecticut return. Military personnel are residents of the state in which they resided when they enlisted. If Jill had a part-time job in Connecticut... Her Connecticut-sourced income from nonmilitary employment is taxable. Jill must file Form CT-1040NR/PY to report the income. Spouses of military personnel, see Informational Publication 2015(24), Connecticut Income Tax Information for Armed Forces Personnel and Veterans. Combat Zone The income tax return of any individual in the U.S. Armed Forces serving in a combat zone or injured and hospitalized while serving in a combat zone is due 180 days after returning. There will be no penalty or interest charged. For any individual who dies while on active duty in a combat zone or as a result of injuries received in a combat zone, no income tax or return is due for the year of death or for any prior taxable year ending on or after the first day serving in a combat zone. If any tax was previously paid for those years, the tax will be refunded to the legal representative of the estate or to the surviving spouse upon the filing of a return on behalf of the decedent. In filing the return on behalf of the decedent, the legal representative or the surviving spouse should enter zero tax due and attach a statement to the return along with a copy of the death certificate. Combat zone is an area designated by an Executive Order from the President of the United States as areas in which the U.S. Armed Forces are engaging or have engaged in combat. A combat zone also includes an area designated by the federal government as a qualifi ed hazardous duty area. Spouses of military personnel and civilians supporting the military in a combat zone region who are away from their permanent duty stations, but are not within the designated combat zone, are also eligible for the 180 day extension. QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. IP 2015(24) PS 2016(4) Individuals requesting an extension under combat zone provisions should print both the name of the combat zone and the operation they served with at the top of their Connecticut tax return. This is the same combat zone or operation name provided on their federal income tax return. See Informational Publication 2015(24), Connecticut Income Tax Information for Armed Forces Personnel and Veterans. Connecticut Adjusted Gross Income Connecticut adjusted gross income is your federal adjusted gross income as properly reported on federal Form 1040, Line 37; federal Form 1040A, Line 21; or federal Form 1040EZ, Line 4; and any Connecticut modifications required to be reported on Form CT-1040, Schedule 1. Taxable Year and Method of Accounting You must use the same taxable year for Connecticut income tax purposes as you use for federal income tax purposes. Most individuals use the calendar year as their taxable year for federal income tax purposes. However, if the calendar year is not your taxable year for federal income tax purposes, references in this booklet to 2016 are references to your taxable year beginning during You must use the same method of accounting for Connecticut income tax purposes as you use for federal income tax purposes. If your taxable year or method of accounting is changed for federal income tax purposes, the same change must be made for Connecticut income tax purposes. When to File Your Connecticut income tax return is due on or before April 15, If you are not a calendar year filer, your return is due on or before the fifteenth day of the fourth month following the close of your taxable year. If the due date falls on a Saturday, Sunday, or legal holiday, the return will be considered timely filed if filed by the next business day. The 2016 Connecticut income tax return (and payments) will be considered timely if filed on Tuesday, April 18, In 2017, the due date for filing a Connecticut income tax return (April 15) falls on a Saturday, the next business day is Monday, April 17, which is a legal holiday in the District of Columbia (Emancipation Day). Therefore, for filing purposes the next business day is Tuesday, April 18, Your return meets the timely filed and timely payment rules if the U.S. Postal Service cancellation date, or the date recorded or marked by a designated private delivery service (PDS) using a designated type of service, is on or before the due date. Not all services provided by these designated PDSs qualify. This list is subject to change. See Policy Statement 2016(4), Designated Private Delivery Services and Designated Types of Service, for a current list of qualified PDSs. If Form CT-1040 is filed late or all the tax due is not paid with the return, see Interest and Penalties on Page 14 to determine if interest and penalty must be reported with the return. Page 11

16 Extension Requests Extension of Time to File To request an extension of time to file your return, you must file Form CT-1040 EXT, Application for Extension of Time to File Connecticut Income Tax Return for Individuals, and pay all the tax you expect to owe on or before the due date. Visit to file your extension electronically. Form CT-1040 EXT extends only the time to file your return; it does not extend the time to pay your tax due. See Interest and Penalties on Page 14 if you do not pay all the tax due with your extension request. You do not need to file Form CT-1040 EXT if you: Have requested an extension of time to file your 2016 federal income tax return and you expect to owe no additional Connecticut income tax for the 2016 taxable year after taking into account any Connecticut income tax withheld from your wages and any Connecticut income tax payments you have made; or Pay your expected 2016 Connecticut income tax due using a credit card on or before the due date. You must file Form CT-1040 EXT if you: Did not request an extension of time to file your federal income tax return, but you are requesting an extension of time to file your Connecticut income tax return; or Have requested an extension of time to file your federal income tax return but you expect to owe additional Connecticut income tax for 2016 and wish to submit a payment with Form CT-1040 EXT. If you file an extension request with a payment after the due date, generally April 15, DRS will deny your extension request. U.S. Citizens Living Abroad If you are a U.S. citizen or resident living outside the United States and Puerto Rico, or if you are in the armed forces of the United States serving outside the United States and Puerto Rico and are unable to file a Connecticut income tax return on time, you must file Form CT-1040 EXT. You must also pay the amount of tax due on or before the original due date of the return. Include with Form CT-1040 EXT a statement that you are a U.S. citizen or resident living outside the United States and Puerto Rico, or in the armed forces of the United States serving outside the United States and Puerto Rico, and that you qualify for a federal automatic extension. If your application is approved, the due date is extended for six months. If you received a federal extension of time to file beyond six months, to qualify for the federal foreign earned income exclusion and for the foreign housing exclusion or deduction, you may file your Connecticut return using the federal extension due date. Submit a copy of the approved federal Form 2350, Application for Extension of Time to File U.S. Income Tax return by attaching it to the front of your Form CT Extension of Time to Pay You may be eligible for a six-month extension of time to pay the tax due if you can show that paying the tax by the due date will cause undue hardship. You may request an extension by filing Form CT-1127, Application for Extension of Time for Payment of Income Tax, on or before the due date of the original return. Attach Form CT-1127 to the front of Form CT-1040 or Form CT-1040 EXT and send it on or before the due date. As evidence of the need for extension, you must attach: An explanation of why you cannot borrow money to pay the tax due; A statement of your assets and liabilities; and An itemized list of your receipts and disbursements for the preceding three months. If an extension of time to pay is granted and you pay all the tax due in full by the end of the extension period, a penalty will not be imposed. However, interest will accrue on any unpaid tax from the original due date. You should make payments as soon as possible to reduce the interest you would otherwise owe. Mailing Addresses for Form CT-1040 For tax forms with payment enclosed: Department of Revenue Services PO Box 2977 Hartford CT For tax forms requesting refunds or tax forms without payment enclosed: Department of Revenue Services PO Box 2976 Hartford CT For payments without tax forms: Department of Revenue Services Revenue Accounting PO Box 5088 Hartford CT To ensure proper posting of your payment, write 2016 Form CT-1040 and your SSN(s) (optional) on the front of your check. QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. TSC Website Page 12

17 Estimated Tax Payments for Tax Year 2017 You must make estimated income tax payments if your Connecticut income tax (after tax credits) minus Connecticut tax withheld is $1,000 or more and you expect your Connecticut income tax withheld to be less than your required annual payment for the 2017 taxable year. Your required annual payment for the 2017 taxable year is the lesser of: 90% of the income tax shown on your 2017 Connecticut income tax return; or 100% of the income tax shown on your 2016 Connecticut income tax return, if you filed a 2016 Connecticut income tax return that covered a 12-month period. You do not have to make estimated income tax payments if: You were a Connecticut resident during the 2016 taxable year, and you did not file a 2016 income tax return because you had no Connecticut income tax liability; or You were a nonresident or part-year resident with Connecticut-sourced income during the 2016 taxable year and you did not file a 2016 income tax return because you had no Connecticut income tax liability. If you were a nonresident or part-year resident and you did not have Connecticut-sourced income during the 2016 taxable year, your required annual payment is 90% of the income tax shown on your 2017 Connecticut income tax return. Annualized Income Installment Method If your income varies throughout the year, you may be able to reduce or eliminate the amount of your estimated tax payment for one or more periods by using the annualized income installment method. See Informational Publication 2015(17), A Guide to Calculating Your Annualized Estimated Income Tax Installments and Worksheet CT-1040 AES. Form CT-1040ES You may file and pay your Connecticut estimated tax using the TSC. Visit the DRS website at for more information. You may also pay your 2017 estimated Connecticut income tax payments by credit card. Use Form CT-1040ES, Estimated Connecticut Income Tax Payment Coupon for Individuals, to make estimated Connecticut income tax payments for 2017 using a paper return. If you made estimated tax payments in 2016, you will automatically receive coupons for the 2017 taxable year in mid-january. They will be preprinted with your name, address, and the last four digits of the SSN. To ensure your payments are properly credited, use the preprinted coupons. If you did not make estimated tax payments in 2016, use Form CT-1040ES to make your first estimated income tax payment. Form CT-1040ES is available on the DRS website. If you file this form, additional preprinted coupons will be mailed to you. To avoid making estimated tax payments, you may request your employer to withhold additional amounts from your wages to cover the taxes on other income. You can make this change by giving your employer a revised Form CT-W4, Employee s Withholding Certifi cate. For help in determining the correct amount of Connecticut withholding to be withheld from your wage income, see Informational Publication 2017(7), Is My Connecticut Withholding Correct? Special Rules for Farmers and Fishermen If you are a farmer or fisherman (as defined in IRC 6654(i)(2)) who is required to make estimated income tax payments, you must make only one payment. Your payment is due on or before January 15, 2018, for the 2017 taxable year. The required installment is the lesser of 66 2 /3% of the income tax shown on your 2017 Connecticut income tax return or 100% of the income tax shown on your 2016 Connecticut income tax return Estimated Tax Due Dates Due dates of installments and the amount of required payments for 2017 calendar year taxpayers are: April 15, 2017 * 25% of your required annual payment 25% of your required annual payment (A total of 50% of your required annual June 15, 2017 payment should be paid by this date.) 25% of your required annual payment (A total of 75% of your required annual September 15, 2017 payment should be paid by this date.) 25% of your required annual payment (A total of 100% of your required January 15, 2018 annual payment should be paid by this date.) An estimate is considered timely filed if received on or before the due date, or if the date shown by the U.S. Postal Service cancellation mark is on or before the due date. Taxpayers who report on other than a calendar year basis should use their federal estimated tax installment due dates. If the due date falls on a Saturday, Sunday, or legal holiday, the return will be considered timely if filed by the next business day. * The April 15, 2017, estimated payment will be considered timely if made on Tuesday, April 18, QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. IP 2015(17) TSC Website IP 2017(7) Page 13

18 If you file a 2017 Connecticut income tax return on or before March 1, 2018, and pay in full the amount computed on the return as payable on or before that date, you will not be charged interest for underpayment of estimated tax. Farmers or fishermen who use these special rules must complete and attach Form CT-2210, Underpayment of Estimated Tax by Individuals, Trusts, and Estates, to their Connecticut income tax return to avoid being billed for interest on the underpayment of estimated income tax. Check Box D of Form CT-2210, Part I, and the box for Form CT-2210 on the front of Form CT See Informational Publication 2010(16), Farmer s Guide to Sales and Use Taxes, Motor Vehicle Fuels Tax, Estimated Income Tax, and Withholding Tax, or Informational Publication 2009(14), Fisherman s Guide to Sales and Use Taxes and Estimated Income Tax. Form CT-2210 You may be charged interest if your 2016 Connecticut income tax (after tax credits) minus Connecticut tax withheld is $1,000 or more. Use Form CT-2210 to calculate interest on the underpayment of estimated tax. Form CT-2210 and detailed instructions are available from DRS. However, this is a complex form and you may prefer to have DRS calculate the interest. If so, do not file Form CT-2210 and DRS will send you a bill. Interest and Penalties In general, interest and penalty apply to any portion of the tax not paid on or before the original due date of the return. Interest If you do not pay the tax when due, you will owe interest at 1% per month or fraction of a month until the tax is paid in full. If you did not pay enough tax through withholding or estimated payments, or both, by any installment due date, you may be charged interest. This is true even if you are due a refund when you file your tax return. See Interest on Underpayment of Estimated Tax on this page. Interest on underpayment or late payment of tax cannot be waived. Penalty for Late Payment or Late The penalty for late payment or underpayment of income or use tax is 10% of the tax due. If a request for an extension of time to file has been granted, you can avoid a penalty for failure to pay the full amount due by the original due date if you: Pay at least 90% of the income tax shown to be due on the return on or before the original due date of the return; and Pay the balance due with the return on or before the extended due date. If you file your return electronically and pay your balance due by check, then your check must be postmarked on whichever is earlier: the date of acceptance of the electronic return or the extended due date. If no tax is due, DRS may impose a $50 penalty for the late filing of any return or report required by law to be filed. Penalty for Failure to File If you do not file your return and DRS files a return for you, the penalty for failure to file is 10% of the balance due or $50, whichever is greater. If you are required to file Form CT-1040X, Amended Connecticut Income Tax Return for Individuals, and fail to do so, a penalty may be imposed. Waiver of Penalty To make a waiver of penalty request, taxpayers must complete and submit Form DRS-PW, Request for Waiver of Civil Penalty, to the DRS Operations Bureau/Penalty Waiver. Taxpayers may mail Form DRS-PW to the address listed below or fax it to the Operations Bureau/Penalty Waiver at Department of Revenue Services Operations Bureau/Penalty Waiver PO Box 5089 Hartford CT DRS will not consider a penalty waiver request unless it is accompanied by a fully completed and properly executed Form DRS-PW. See Policy Statement 2015(4), Requests for Waiver of Civil Penalties. Interest on Underpayment of Estimated Tax You may be charged interest if you did not pay enough tax through withholding or estimated payments, or both, by any installment due date. This is true even if you are due a refund when you file your tax return. Interest is calculated separately for each installment. Therefore, you may owe interest for an earlier installment even if you paid enough tax later to make up the underpayment. Interest at 1% per month or fraction of a month will be added to the tax due until the earlier of April 15, 2017, or the date on which the underpayment is paid. If you file a 2016 Connecticut income tax return on or before January 31, 2017, and pay in full the amount computed on the return as payable on or before that date, you will not be charged interest for failing to make the estimated payment due January 15, A farmer or fisherman who is required to make estimated income tax payments will not be charged interest for failing to make the estimated payment due January 15, 2017, if he or she files a 2016 Connecticut income tax return on or before March 1, 2017, and pays in full the amount computed on the return as payable on or before that date. QRCs for DRS publications referenced on this page. IP 2009(14) PS 2015(4) IP 2010(16) Page 14

19 Refund Information There are two ways to get your refund: Direct Deposit or Paper Check. The fastest way to get your refund is to file your return electronically and elect direct deposit. Paper return filers may request direct deposit. The direct deposit option is not available to first-time Connecticut income tax filers. For faster service, DRS recommends that taxpayers use direct deposit to a savings or checking account. For returns filed on paper, you must allow 10 to 12 weeks from the date you mailed the return before checking on the status of your refund. Your refund could be delayed if additional information or identity verification is required to prevent refund theft. Anyone who receives a refund but has not filed a Connecticut income tax return must contact DRS immediately. Call the DRS Fraud Unit at Option 1: Direct Deposit To elect direct deposit, complete Lines 25a through 25c. See Line 25: Refund, on Page 21. Make your direct deposit successful by: Confirming your account number and routing number with your financial institution and entering them clearly on your tax return; Entering the direct deposit information separately for both your federal and state electronically filed returns; and Printing your software-prepared paper return only after you have entered the direct deposit information into the program. Some financial institutions do not allow a joint refund to be deposited into an individual account. Option 2: Paper Check If you do not elect direct deposit or are a first-time filer, a refund check will be issued and refund processing may be delayed. Refund Status Check the status of your refund using the TSC by visiting or call (Connecticut calls outside the Greater Hartford calling area only) or (from anywhere). You must provide your SSN (and your spouse s if filing jointly) and the exact amount of the refund requested. If DRS does not issue your refund on or before the ninetieth day after we receive your claim for refund, you may be entitled to interest on your overpayment. Interest is computed at the rate of two thirds of one percent ( 2 /3%) for each month or fraction of a month between the ninetieth day following receipt of your properly completed claim for refund or the due date of your return, whichever is later, and the date of notice that your refund is due. Protecting Taxpayer Security Tax fraud and refund theft are very serious challenges. DRS is committed to protecting taxpayer identity information and making sure thieves do not steal refunds. Once again this tax season, we have increased our anti-fraud efforts in coordination with the IRS, other state tax agencies, and tax preparers. We still encourage taxpayers to file and pay electronically and opt for direct deposit of refunds. However, in situations where fraud is more likely, even direct deposit requests may be converted to a paper check. In other circumstances of suspicious filing, refunds may be delayed while we work with the actual taxpayer to confirm that it is not a fraudulent claim. We ask for your understanding and patience; we are only doing this to protect you. Anyone who receives a refund but has not filed their Connecticut return must contact the DRS immediately. Call the DRS Fraud Unit at Offset Against Debts If you are due a refund, all or part of your overpayment may be used to pay outstanding debts or taxes. Your overpayment will be applied in the following order: penalty and interest you owe to DRS; other taxes you owe to DRS; debts to other Connecticut state agencies; federal taxes you owe the IRS; taxes you owe to other states; amounts designated by you to be applied to your 2017 estimated tax; CHET contributions; and your designated charitable contributions. Any remaining balance will be refunded to you. If your refund is reduced, you will receive an explanation for the reduction. Connecticut Lottery Winners Who Are Delinquent Taxpayers DRS provides to the Connecticut Lottery Corporation a list of delinquent taxpayers who have an unpaid tax liability. If you are a Connecticut Lottery winner, the Connecticut Lottery Corporation will deduct and withhold from the lottery prize payment the amount of your outstanding Connecticut tax liability. Nonobligated Spouse When a joint return is filed and only one spouse owes pastdue child support, a debt to any Connecticut state agency, or tax due to another state or the IRS, the spouse who is not obligated may be eligible to claim a share of the joint income QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. DRS Website DRS My Refund Website DRS DRS Page 15

20 tax refund. A nonobligated spouse who received income in 2016 and who made Connecticut income tax payments (withholding or estimates) for the 2016 taxable year may be eligible to claim his or her share of any refund if: A joint Connecticut tax return was filed for 2016; and There was an overpayment of tax. If you are a nonobligated spouse, you may claim your share of a joint refund by filing Form CT-8379, Nonobligated Spouse Claim. If you are filing a paper Form CT-1040, check the box on the front of your return to indicate that you are filing Form CT Attach Form CT-8379 and all W-2 and 1099 forms to the front of your return. If you are filing Form CT-1040 electronically, select the Form CT-8379 indicator on your return. Mail the completed Form CT-8379 and all W-2 and 1099 forms to the Department of Revenue Services, P.O. Box 5035, Hartford, CT Do not use Form CT-8379 to claim your share of a Connecticut income tax refund that was applied to your spouse s federal income tax liability. For information about IRS offsets, contact the IRS at the telephone number listed on the Notice of Refund Offset issued to you. Payment Options Electronically filing and paying your taxes is easy and accurate. It provides you with confirmation of receipt and reduces the possibility of errors. While some taxpayers may be reluctant to make electronic payments for security reasons, we want to assure you that our electronic funds transfer is safe and secure. Pay Electronically To make a direct payment visit the TSC at and follow the prompts or visit You can authorize DRS to transfer funds from your bank account (checking or savings) to a DRS account by entering your bank account number and your bank routing number. You can file your return any time before the due date and designate the amount of payment and date of transfer. Your bank account will be debited on the date you indicate. You must pay the balance due on or before the due date to avoid penalty and interest. Should you elect to file electronically but make your payment of tax due with a paper check, you are required to remit your payment with Form CT-1040V, 2016 Connecticut Electronic Payment Voucher. Do not send a paper copy of your electronically filed return with the payment. Pay by Credit Card or Debit Card You may elect to pay your 2016 Connecticut income tax liability using a credit card (American Express, Discover, MasterCard, VISA ) or comparable debit card. A convenience fee will be charged by the service provider. You will be informed of the amount of the fee and you may elect to cancel the transaction. At the end of the transaction, you will be given a confirmation number for your records. Visit and select State Payments; or Call Official Payments Corporation toll-free at Your payment is effective on the date you make the charge. Pay by Mail Make your check payable to Commissioner of Revenue Services. To ensure proper posting of your payment, write 2016 Form CT-1040 and your SSN(s) (optional) on the front of your check. Sign your check and clip it to the front of your return. Do not send cash. DRS may submit your check to your bank electronically. Failure to file or failure to pay the proper amount of tax when due will result in penalty and interest charges. It is to your advantage to file when your return is due whether or not you are able to make full payment. Attach other required forms and schedules, including Supplemental Schedule CT-1040WH, to the back of your return or as directed on the form. You do not need to attach a copy of your previously-filed Form CT-1040 EXT. Rounding Off to Whole Dollars You must round off cents to the nearest whole dollar on your return and schedules. If you do not round, DRS will disregard the cents. Round down to the next lowest dollar all amounts that include 1 through 49 cents. Round up to the next highest dollar all amounts that include 50 through 99 cents. However, if you need to add two or more amounts to compute the amount to enter on a line, include cents and round off only the total. Example: Add two amounts ($ $3.21) to compute the total ($4.50) to enter on a line. $4.50 is rounded to $5.00 and entered on the line. DRS does not round when issuing refunds. Income Tax Credit The following credit is applicable against the income tax. If you qualify, you may claim the credit on Schedule CT-IT Credit, Income Tax Credit Summary. For more information about additional requirements and limitations to this credit, see Special Notice 2010(3), 2010 Legislative Changes Affecting the Income Tax; Special Notice 2012(6), 2012 Legislative Changes Affecting the Income Tax; or contact Connecticut Innovations Inc. QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. TSC Website Official Payments Website Official Payments Telephone Page 16

21 The tax credit may be claimed by the shareholders or partners of an S corporation or an entity treated as a partnership for federal income tax purposes. If the entity is a single member limited liability company that is disregarded as an entity separate from its owner, the tax credit may be claimed by the limited liability company owner provided the owner is a person subject to Connecticut income tax. Angel Investor Tax Credit The angel investor tax credit is available to investors who meet the requirements of Conn. Gen. Stat d, as amended by Conn. Pub. Acts 16-3 (May Spec. Session.) 183. An angel investor must apply to Connecticut Innovations, Inc. (CII) to reserve the credit and must receive an Angel Investor Tax Credit Certifi cate from CII before claiming the credit on the income tax return. The credit is for a cash investment of not less than $25,000 in the qualified securities of a Connecticut business by an angel investor. The credit is equal to 25% of such investor s cash investment provided the total tax credits allowed to any one investor shall not exceed $250,000 and shall be claimed in the taxable year in which the cash investment was made. The credit cannot be used against the withholding tax liability imposed under Conn. Gen. Stat and cannot exceed the amount of income tax imposed under Chapter 229 of the Connecticut General Statutes for the taxable year. Tax credits cannot be reserved for any investments made on or after July 1, Any tax credit claimed but not applied against the income tax liability may be carried forward for the five immediately succeeding taxable years until the full credit has been applied. Effective for taxable years commencing on or after January 1, 2016, the angel investor tax credit may be assigned, transferred, or sold. You must complete Form CT-AIT, Angel Investor Tax Credit, if you are selling, assigning, or transferring the credit. You must also complete this form if you have obtained the Angel Investor Credit through a purchase, assignment, or transfer. Attach Form CT-AIT to the back of your paper return. You must file a paper Form CT-1040 when you complete Form CT-AIT. QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. SN 2012(6) CT Innovations SN 2010(3) CT Innovations Website Completing Form CT-1040 Before you begin, gather all your records, including all your federal W-2 and 1099 forms. Use this information to complete your federal income tax return. The information on your federal return is needed to complete your Connecticut return. Complete the return in blue or black ink only. 1 Taxpayer Information Status - Check only one box. Check the appropriate box to indicate your filing status. Generally, your filing status must match your federal income tax filing status for this year. If you are not certain of your filing status for 2016, consult the information in your federal income tax booklet or call the IRS at Although you and your spouse file jointly for federal purposes, you may be required to file separate Connecticut returns. See Special Rules for Married Individuals, on this page. If your filing status is qualifying widow(er) with dependent child on federal Form 1040 or 1040A, do not enter your deceased spouse s name or SSN in the spaces provided for spouse s name and spouse s SSN on Form CT Special Rules for Married Individuals When one spouse is a Connecticut resident or a nonresident and the other spouse is a part-year resident, each spouse who is required to file a Connecticut income tax return must file as married filing separately. When one spouse is a Connecticut resident and the other is a nonresident, each spouse who is required to file a Connecticut income tax return must file as married filing separately unless they: File jointly for federal income tax purposes; and Elect to be treated as if both were Connecticut residents for the entire taxable year. When both spouses are part-year residents of Connecticut but do not have the same period of residency, married filing separately is their Connecticut income tax filing status. When both spouses are part-year residents of Connecticut and have the same period of residency, they may choose married filing jointly or married filing separately as their Connecticut income tax filing status. When both spouses are nonresidents of Connecticut and only one of you has income derived from or connected with Page 17

22 sources within Connecticut, only that spouse is required to file a Connecticut income tax return and that spouse s Connecticut income tax filing status is married filing separately for Connecticut unless you both elect to file a joint Connecticut income tax return. If an election is made, married filing jointly is your Connecticut income tax filing status. When one spouse is a nonresident alien and the other is a citizen or resident of the United States, each spouse who is required to file a Connecticut income tax return must file as married filing separately unless: An election is made by the nonresident alien and his or her spouse to file a joint federal income tax return; A married filing joint return is filed for federal income tax purposes; and The spouses are otherwise required or permitted to file a joint Connecticut income tax return. The election to file a joint return means the joint federal adjusted gross income must be used on Form CT-1040, Line 1. It also means the spouse who would not otherwise be required to file is now jointly and severally liable for any tax liability associated with the filing of the income tax return. If you are filing a joint federal return with your spouse but are required to file a separate Connecticut return, each of you will have to recompute your federal adjusted gross income as if you were each filing as married filing separately for federal income tax purposes. Enter on Form CT-1040, Line 1, your income as recalculated. Social Security Number, Name, and Address You must write your Social Security Number (SSN), name, and address in the space provided. If your city or town of residence is different from your mailing address enter the additional information in the space provided. If you file a joint return, enter your SSN and your spouse s SSN in the order they appear on your federal return. If the taxpayer is deceased, see Deceased Taxpayers on Page 9. If you are a nonresident alien and do not have an SSN, enter your Individual Taxpayer Identification Number (ITIN) in the space provided above your name. Nonresident aliens who have applied for an ITIN from the Internal Revenue Service by filing federal Form W-7, but have not received the ITIN, must wait for the ITIN to be issued before filing their Connecticut tax return. However, if you have not received your ITIN by April 15, file your return without the ITIN, enter Applied For or NRA in the SSN field, pay the tax due, and attach a copy of the federal Form W-7. DRS will contact you upon receipt of your return. DRS will hold your return until you receive your ITIN and you forward the information to us. If you fail to submit the information requested, the processing of your return will be delayed. DRS cannot process your return until we receive the ITIN. QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page DRS Income Tax Calculator 2 Calculate Your Tax Line 1: Federal Adjusted Gross Income Enter your federal adjusted gross income from your 2016 federal income tax return. This is the amount reported on federal Form 1040, Line 37; federal Form 1040A, Line 21; or federal Form 1040EZ, Line 4. Nonresident aliens, see Special Information for Nonresident Aliens on Page 9. Line 2: Additions Enter the amount from Form CT-1040, Schedule 1, Line 38. See Additions to Federal Adjusted Gross Income on Page 23. Line 3 Add Line 1 and Line 2 and enter the total. Line 4: Subtractions Enter the amount from Form CT-1040, Schedule 1, Line 50. See Subtractions From Federal Adjusted Gross Income on Page 24. Line 5: Connecticut Adjusted Gross Income Subtract Line 4 from Line 3 and enter the result. This is your Connecticut adjusted gross income. Line 6: Income Tax For each filing status, if the amount on Line 5 is: $12,000 or less for married filing separately; $15,000 or less for single; $19,000 or less for head of household; or $24,000 or less for married filing jointly, or qualifying widow(er) with dependent child, enter 0 on Line 6. You do not owe any income tax. Otherwise, calculate your tax using one of the following methods. If your Connecticut adjusted gross income is less than or equal to $102,000, you may use the Tax Tables beginning on Page 39 to find your tax. If your Connecticut adjusted gross income is more than $102,000 but less than or equal to $500,000, you may: 1. Use the Income Tax Table on the DRS website at and select Individuals; 2. Use the Tax Calculation Schedule beginning on Page 49; or 3. Use the online Tax Calculator found on the DRS website at and select Individuals. If your Connecticut adjusted gross income is more than $500,000, visit and select Individuals to use the Income Tax Calculator or use the Tax Calculation Schedule beginning on Page 49. You may also use the Income Tax Calculator or the Tax Calculation Schedule if your Connecticut adjusted gross income is less than or equal to $500,000. If you calculate your tax manually, using the tax calculator on the DRS website will ensure your tax calculation is correct. After you have found the calculated tax, enter that amount on Line 6. Page 18

23 Line 7: Credit for Income Taxes Paid to Qualifying Jurisdictions If all or part of the income reported on this return is subject to income tax in a qualifying jurisdiction and you have filed a return and paid income taxes to that jurisdiction, complete Form CT-1040, Schedule 2, and enter the amount from Line 59 here. See Schedule 2 - Credit for Income Taxes Paid to Qualifying Jurisdictions on Page 27. You must attach a copy of your return filed with the qualifying jurisdiction(s) or the credit will be disallowed. Line 8 Subtract Line 7 from Line 6 and enter the result. If Line 7 is greater than Line 6, enter 0. Line 9: Connecticut Alternative Minimum Tax If you were required to pay the federal alternative minimum tax for 2016, you must file Form CT-6251, Connecticut Alternative Minimum Tax Return - Individuals. Enter the amount shown on Form CT-6251, Line 23. Line 10 Add Line 8 and Line 9 and enter the total. Line 11: Credit for Property Taxes Paid on Your Primary Residence, Motor Vehicle, or Both If Line 10 is zero, skip Line 11 and Line 12 and go to Line 13. Otherwise, complete and attach Schedule 3 on Page 4 of Form CT-1040 to be allowed this credit. Enter the amount from Line 68 on Line 11. Be certain to include all of the requested information or your credit may be denied. See Schedule 3 - Property Tax Credit on Page 30. The credit is limited to the lesser of $200 or the amount of qualifying property taxes paid. The maximum property tax credit allowed is $200 per return regardless of filing status. See Property Tax Credit Table on Page 31. This credit can be used to offset only your 2016 income tax. You may not carry this credit forward and it is not refundable. Line 12 Subtract Line 11 from Line 10 and enter the result. If less than zero, enter 0. Line 13: Allowable Credits Enter the amount from Schedule CT-IT Credit, Income Tax Credit Summary, Part I, Line 11. Use Schedule CT-IT Credit to claim the tax credit (see Income Tax Credit, on Page 16) or to claim the credit for a prior year alternative minimum tax from Form CT-8801, Credit for Prior Year Connecticut Minimum Tax for Individuals, Trusts and Estates. Line 14: Connecticut Income Tax Subtract Line 13 from Line 12 and enter the result. If less than zero, enter 0. Line 15: Individual Use Tax Complete the Connecticut Individual Use Tax Worksheet on Page 32, then complete and attach Schedule 4 on Page 4 of Form CT Enter on Line 15 total use tax due as reported on Schedule 4, Line 69. You must enter 0 if no Connecticut use tax is due; otherwise you have not filed a use tax return. Failure to report use tax due on Line 15 and include that amount in Line 30 may subject you to a penalty of up to $5,000, imprisonment for up to 5 years, or both. See Pages 4, 5, and 33 for more information on the use tax. Line 16 and Line 17 Add Line 14 and Line 15. Enter the total on Line 16 and Line Payments Line 18: Connecticut Tax Withheld For each federal W-2 or 1099 form where Connecticut income tax was withheld, enter the following on Lines 18a through 18e. a Employee s social security number OMB No b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld c Employer's name, address, and ZIP code D Control number e Employee's first name and initial f Employee s address and ZIP code 15 State Employer's state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name CT Form Copy 1 XX-XXXXXXX Last name Enter the amount from Box 16 in Column B of Form CT Wage Statement and Tax For State, City, or Local Tax Department Enter the number from Box b in Column A of Form CT XXX.00 3 Social security wages 4 Social security tax withheld 5 Medicare wages and tips 6 Medicare tax withheld 7 Social security tips 8 Allocated tips 9 10 Dependent care benefits Suff. 11 Nonqualified plans 12a Statutory 13 employee 14 Other W Box 15 must show CT to be claimed as Connecticut withholding. XXX.00 Retirement plan Third-party sick pay C o d e 12b C o d e 12c C o d e 12d C o d e Department of the Treasury - Internal Revenue Service Enter the amount from Box 17 (in whole dollars) in Column C of Form CT Column A: Enter the Employer Identification Number or Payer Identification Number. Column B: Enter the amount of Connecticut wages, tips, etc. Column C: Enter the amount of Connecticut income tax withheld. You must complete all columns or your Connecticut withholding will be disallowed. Do not include tax withheld for other states or federal income tax withholding. If you have more than five federal W-2 or 1099 forms showing Connecticut income tax withheld, you must complete and attach Supplemental Schedule CT-1040WH, Connecticut Income Tax Withholding. Enter on Supplemental Schedule CT-1040WH only Connecticut income tax withholding amounts not previously reported on Form CT Enter the total from Supplemental Schedule CT-1040WH, Line 3, on the last line of Column C, Line 18f. Add all entries in Column C (including the additional amount from Supplemental Schedule CT-1040WH) and enter the total Connecticut income tax withheld on Line 18. Do not send copies of W-2 and 1099 forms. Keep these for your records. DRS may request them at a later date. Page 19

24 When filing Form CT-8379, Nonobligated Spouse Claim, attach all W-2 and 1099 forms. Line 19: All 2016 Estimated Tax Payments Enter the total of all Connecticut estimated tax payments, advance tax payments, and any overpayments of Connecticut income tax applied from a prior year. Include any 2016 estimated payments made in Do not include any refunds received. Line 20: Payments Made With Form CT-1040 EXT If you filed Form CT-1040 EXT, Application for Extension of Time to File, enter the amount you paid with that form. Line 20a: Connecticut Earned Income Tax Credit A Connecticut resident taxpayer may claim an earned income tax credit (CT EITC) against the Connecticut income tax due for the taxable year. The amount of the CT EITC is 27.5% of the earned income credit claimed and allowed on the federal income tax return for the same taxable year. If the CT EITC exceeds the taxpayer s Connecticut income tax liability, the excess is considered an overpayment and will be refunded without interest. Complete Schedule CT-EITC, Connecticut Earned Income Tax Credit, to calculate your earned income tax credit. Enter the amount from Schedule CT-EITC, Line 16. You must attach a copy of your schedule or the credit will be disallowed. Line 20b: Claim of Right Credit If you have claim of right income for federal tax purposes and are claiming the federal claim of right credit on your 2016 federal return, you may also be entitled to a claim of right credit for Connecticut income tax purposes. If during your 2016 taxable year you had to repay income you included in your Connecticut adjusted gross income for an earlier taxable year, and the amount you repaid is more than $3,000, you may be able to claim a credit against your Connecticut income tax for your 2016 taxable year. If you are eligible for the Connecticut Claim of Right Credit, complete Form CT-1040CRC, Claim of Right Credit, to claim a credit equal to the Connecticut income tax you would not have had to pay if the repaid amount had not been included in your Connecticut adjusted gross income in the earlier taxable year. You are eligible for the Connecticut claim of right credit if you meet all of the following conditions: You were a resident, nonresident, or part-year resident individual who included income in Connecticut adjusted gross income for an earlier taxable year(s) (year(s) of receipt). A trust or estate is not eligible to claim relief for Connecticut income tax purposes; You were required to repay the income during your 2016 taxable year (year of repayment); The amount of the repayment exceeds $3,000; and You determined your federal income tax liability for the year of repayment under IRC 1341(a)(4) (see Exceptions) or IRC. If the Claim of Right Credit exceeds the taxpayer s Connecticut income tax liability, the excess is considered an overpayment and will be refunded. Complete Form CT-1040CRC, Claim of Right Credit, to calculate your claim of right credit. Enter the amount from Form CT-1040CRC, Line 6. Line 21: Total Payments Add Lines 18, 19, 20, 20a, and 20b and enter the total. This is the total of your Connecticut tax payments. 4 Overpayment Line 22: Overpayment If Line 21 is greater than Line 17, subtract Line 17 from Line 21 and enter the result. This is your overpayment. To properly allocate your overpayment, go to Lines 23 through 25. If Line 21 is less than Line 17, go to Line 26. If you were required to make estimated income tax payments, but you did not pay enough tax through withholding, estimated tax, or both, by any installment due date, your refund may be reduced by the interest due on the underpayment of estimated tax. See Form CT-2210, Underpayment of Estimated Income Tax by Individuals, Trusts, and Estates. Line 23: Amount of Line 22 You Want Applied to Your 2017 Estimated Tax Enter the amount of your 2016 overpayment you want applied to your 2017 estimated Connecticut income tax. It will be treated as estimated tax paid on April 15, 2017, if your return is filed on time or if you filed a timely request for extension and your return is filed within the extension period. Payments received after April 15, 2017, will be applied as of the date of receipt. Your request to apply this amount to your 2017 estimated income tax is irrevocable. Line 24: CHET Contribution from Schedule CT-CHET Complete and attach Schedule CT-CHET, Connecticut Higher Education Trust (CHET) 529 College Savings Plan Contribution to contribute all or part of your Connecticut individual income tax overpayment (Line 22) to a CHET 529 College Savings Plan Account(s). Enter the total contributions as reported on Schedule CT-CHET, Line 4. Your contribution is irrevocable. Line 24a: Total Contributions to Designated Charities You may make a contribution on this return only if you are entitled to a refund of an overpayment. Your contribution is limited to your refund amount. Complete and attach Schedule 5 on Page 4 of Form CT Enter the total contributions as reported on Schedule 5, Line 70. Your contribution is irrevocable. You may also make direct contributions by following the instructions on Page 6. Page 20

25 Line 25: Refund Subtract the total of Lines 23, 24, and 24a from Line 22. The result is the amount of your refund. There are two refund options available: Option 1: Direct Deposit Complete Lines 25a, 25b, and 25c to have your refund directly deposited into your checking or savings account. See Refund Information, on Page 15. This option is not available to first-time filers. Enter your nine-digit bank routing number and your bank account number in Lines 25b and 25c. Your bank routing number is the first nine-digit number printed on your check or savings withdrawal slip. Your bank account number generally follows the bank routing number. Do not include the check number as part of your account number. Bank account numbers can be up to 17 characters. Name of Depositor Street Address City, State, Zip Code Pay to the Order of Name of your Bank Street Address City, State, Zip Code Routing Number Account Number Date $ No. 101 Federal banking rules require DRS to request information about foreign bank accounts (Line 25d) when the taxpayer requests the direct deposit of a refund into a bank account. If the refund is to be deposited in a bank outside the United States, DRS will mail your refund to you. Option 2: Paper Check If you do not elect or qualify for direct deposit, a refund check will be issued and refund processing may be delayed. If you wish to receive a paper check, you must complete Line 25. Your overpayment will be applied in the following order: penalty and interest you owe to DRS; other taxes you owe to DRS; debts to other Connecticut state agencies; federal taxes you owe the IRS; taxes you owe to other states; amounts designated by you to be applied to your 2017 estimated tax; CHET contributions: and charitable contributions designated by you. Any remaining balance will be refunded to you. 5 Amount You Owe Line 26: Tax Due If Line 17 is greater than Line 21, subtract Line 21 from Line 17 and enter the result. This is the amount of tax you owe. Line 27: Penalty for Late Payment or Late Late Payment Penalty: The penalty for late payment or underpayment of income or use tax is 10% of the amount due. See Penalty for Late Payment or Late on Page 14. Late Penalty: In the event that no tax is due, DRS may impose a $50 penalty for the late filing of any return or report required by law to be filed. Line 28: Interest for Late Payment or Late If you fail to pay the tax when due, interest will be charged at 1% per month or fraction of a month from the due date until payment is made. Line 29: Interest on Underpayment of Estimated Tax If Line 14 minus Line 18 is $1,000 or more, you may owe interest on estimated tax you either underpaid or paid late. Form CT-2210, Underpayment of Estimated Income Tax by Individuals, Trusts and Estates, can help you determine whether you did underestimate and will help you calculate interest. However, this is a complex form and you may prefer to have DRS calculate the interest. If so, do not file Form CT-2210; leave this line blank and DRS will send you a bill. Interest on underpayment of estimated income tax stops accruing on the earlier of the day you pay your tax or April 15, Line 30: Total Amount Due Add Lines 26 through 29 and enter the total. This is the total amount you owe. Pay the amount in full with your return. See Payment Options on Page Sign Your Return After you complete Form CT-1040, sign your name and write the date you signed the return. Your spouse must also sign and enter the date if this is a joint return. The signature line is on Page 2 of Form CT If you file a joint return, you must review the information with your spouse. When both you and your spouse sign the return, you become jointly and severally responsible for paying the full amount of tax, interest, and penalties due. In addition, you and your spouse will be jointly entitled to any refund which will be issued to both names listed on the return. Taxpayer s Address DRS tax returns have a line for taxpayers to enter their address. If you provide an address, DRS may use it to notify you of tax changes and programs. However, DRS will never use to ask for sensitive information, such as your Social Security Number. If you ever have questions about an claiming to be from DRS, contact DRS directly. See Tax Information, on back cover. Paid Preparer Signature Anyone you pay to prepare your return must sign and date it. Paid preparers must also enter their SSN or Preparer Tax Identification Number (PTIN), and their firm s Federal Employer Identification Number (FEIN) in the spaces provided. Alternative Signature Methods DRS conforms to IRS Notice , which provides for alternative preparer signature procedures for federal income tax paper returns that paid practitioners prepare on behalf of their clients. Specifically, income tax return preparers may Page 21

26 sign original returns, amended returns, or requests for filing extensions by rubber stamp, mechanical device, or computer software program. These alternative methods of signing must include either a facsimile of the individual preparer s signature or the individual preparer s printed name. Income tax return preparers who use alternative methods of signing must provide all of the other preparer information that is required on returns and extensions, such as the name, address, relevant employer identification number, the preparer s individual identification number (social security number or preparer tax identification number), and phone number. Paid preparers can follow the same procedure with respect to paper Connecticut income tax returns prepared on behalf of their clients. This procedure only applies to preparers signatures. It does not affect other signature requirements for taxpayers, and does not apply to documents other than tax returns. Third Party Designee To authorize DRS to contact your friend, family member, or any other person to discuss your 2016 tax return, enter the designee s name, telephone number, and any five numbers the designee chooses as his or her personal identification number (PIN). To authorize DRS to contact the paid preparer who signed your return, enter Preparer in the space for the designee s name. You do not have to provide the other information requested. If you enter a designee s name, you and your spouse, if filing a joint return, are authorizing DRS to call the designee to answer any questions that may arise during the processing of your return. You are also authorizing the designee to: Give DRS any information missing from your return; Call DRS for information about the processing of your return or the status of your refund or payment; and Respond to certain DRS notices you have shared with the designee about math errors, offsets, and return preparation. The notices will not be sent to the designee. Once DRS processes the return, the authorization ends. The authorization cannot be revoked. However, the authorization will automatically end no later than the due date (without regard to extensions) for filing your 2017 tax return. This is April 15, 2018, for most taxpayers. Selecting a designee does not replace a power of attorney and will not authorize the designee to receive refunds, bind you to anything (including additional tax liabilities), or represent you before DRS. To authorize another individual to represent you or act on your behalf, you must complete LGL-001, Power of Attorney. Income Tax Fraud Income tax fraud is categorized as a class D felony, which carries a fine of not more than $5,000 or imprisonment for not more than five years, or both. Order of Attachments Paper clip your check in payment of the tax due to the front of the income tax form in the appropriate area marked Clip check here. To ensure proper posting of your payment, write 2016 Form CT-1040 and your SSN(s) (optional) on the front of your check. If you must file any of the following forms, attach the form(s) to the front of your income tax return in the following order: Form CT-19IT, Title 19 Status Release; Form CT-1127, Application for Extension of Time for Payment of Income Tax; Form CT-8379, Nonobligated Spouse Claim; and Federal Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer. Attach other required forms and schedules, including Form CT-1040CRC, Claim of Right Credit; Supplemental Schedule CT-1040WH; Schedule CT-IT Credit; Schedule CT-CHET; Schedule CT-EITC; and Form CT-AIT, to the back of your return or as directed on the form. You do not need to attach a copy of your previously-filed Form CT-1040 EXT. Your Return Keep a copy of this return and all attachments for your records. Attach to this return any required schedules and forms. Do not attach copies of your federal income tax return or federal schedules. DRS does not provide return envelopes for mailing completed forms. See Mailing Addresses for Form CT-1040, on Page 12 for the correct address to use for returns with payments, returns with refunds, or payments only. Recordkeeping Make copies of your tax return; completed worksheets and schedules; and records of all items appearing on the return (such as W-2 and 1099 forms). Retain copies until the statute of limitations expires for that return. Usually, this is three years from the date the return was due or filed, whichever is later. You may need this information to prepare future returns or to file amended returns. Copies of Returns You may request a copy of a previously-filed Connecticut income tax return from DRS by completing LGL-002, Request for Disclosure of Tax Return or Tax Return Information. You can usually expect to receive your copy in approximately three weeks. You may also visit to view and print copies of the current year and the two prior years income tax returns. Page 22

27 Form CT-1040 Schedules The following modifications to federal adjusted gross income are provided in Conn. Gen. Stat (a)(20). Your federal adjusted gross income may not be further modified in determining your Connecticut adjusted gross income except as expressly provided by Conn. Gen. Stat (a)(20). Schedule 1 Modifications to Federal Adjusted Gross Income Additions to Federal Adjusted Gross Income Enter all amounts as positive numbers. Line 31: Interest on State and Local Government Obligations Other Than Connecticut Enter the total amount of interest income derived from state and municipal government obligations (other than obligations of the State of Connecticut or its municipalities) which is not taxed for federal income tax purposes. Do not enter interest income derived from government obligations of Puerto Rico, Guam, American Samoa, or U.S. Virgin Islands. Line 32: Exempt-Interest Dividends From a Mutual Fund Derived From State or Municipal Government Obligations Other Than Connecticut Enter the total amount of exempt-interest dividends received from a mutual fund that are derived from state and municipal government obligations other than obligations of the State of Connecticut or its municipalities. If the exempt-interest dividends are derived from obligations of Connecticut and other states, enter only the percentage derived from non-connecticut obligations. Do not enter exempt-interest dividends derived from government obligations of Puerto Rico, Guam, American Samoa, or U.S. Virgin Islands. Example: A fund invests in obligations of many states including Connecticut. Assuming that 20% of the distribution is from Connecticut obligations, the remaining 80% would be added back on this line. Line 33: Taxable Amount of Lump-Sum Distributions From Qualified Plans Not Included in Federal AGI If you filed federal Form 4972, Tax on Lump-Sum Distributions, with your federal Form 1040 to compute the tax on any part of a distribution from a qualified plan, enter that part of the distribution on Line 33. Do not enter any part of the distribution reported on federal Form 1040, Line 16a; federal Form 1040A, Line 12a; or federal Form 1040, Schedule D. Line 34: Beneficiary s Share of Connecticut Fiduciary Adjustment If you have any income from an estate or trust, your share of any Connecticut modifications (that is, your share of the Connecticut fiduciary adjustment) that applies to the income will be shown on Form CT-1041, Connecticut Income Tax Return for Trusts and Estates, Schedule CT-1041B, Part 1, Column 5. Your share of these modifications should be provided to you by the fiduciary on Schedule CT-1041 K-1. If your share of these modifications is an amount greater than zero, enter the amount on Line 34. If the amount is less than zero, enter the amount on Line 46. If you are a beneficiary of more than one trust or estate, enter the net amount of all modifications, if greater than zero, on Line 34 or, if less than zero, on Line 46. Line 35: Loss on Sale of Connecticut State and Local Government Bonds Enter the total losses from the sale or exchange of notes, bonds, or other obligations of the State of Connecticut or its municipalities used to determine gain (loss) for federal income tax purposes whether or not the entire loss is used in computing federal adjusted gross income. Line 36: Domestic Production Activity Deduction Enter the amount reported as a domestic production activity deduction on federal Form 1040, Line 35. Line 37: Other Use Line 37 to report any of the following modifications: 1. Add back any treaty income reported on federal Form 1040NR-EZ or Form 1040NR if a nonresident alien. Enter the words treaty income in the space provided. 2. Add back any loss or deduction of an enrolled member of the Mashantucket Pequot Tribe who resides in Indian country of such tribe or any loss or deduction of an enrolled member of the Mohegan Tribe who resides in Indian country of such tribe where the loss or deduction is derived from or connected with Indian country of the tribe. Enter the words Mashantucket Pequot Tribe enrolled member or Mohegan Tribe enrolled member, as the case may be. 3. Add back any Connecticut income tax deducted on the federal income tax return to arrive at federal adjusted gross income. Do not add back any Connecticut income tax deducted on federal Form 1040, Schedule A. 4. Add back any expenses paid or incurred for the production (including management, conservation, and maintenance of property held for the production) or collection of income exempt from Connecticut income tax which were deducted on the federal return to arrive at federal adjusted gross income. 5. Add back any amortizable bond premium on bonds producing interest income exempt from Connecticut income tax which premiums were deducted on the federal return to arrive at federal adjusted gross income. Page 23

28 6. Add back any interest or dividend income on obligations or securities of any authority, commission, or instrumentality of the United States which federal law exempts from federal income tax but does not exempt from state income taxes. 7. Add back to the extent deductible in determining federal adjusted gross income, any interest expenses on indebtedness incurred or continued to purchase or carry obligations or securities (the income from which is exempt from Connecticut income tax). 8. Add back the following distributions from an MRA established pursuant to Conn. Gen. Stat. 32-9zz: 100% of any distribution from such MRA not used to purchase machinery or equipment for use in Connecticut or manufacturing facilities, as defined in Conn. Gen. Stat (72), or for workforce training, development or expansion in Connecticut; and 100% of any return of money remaining in the MRA at the end of the five-year period after such account s creation or organization, including any interest earned. See Special Notice 2012(6), 2012 Legislative Changes Affecting the Income Tax. 9. Also use Line 37 to report any additions to federal adjusted gross income required for Connecticut income tax purposes which are not listed on Lines 31 through 36. Line 38: Total Additions Add Lines 31 through 37 and enter the total. Subtractions From Federal Adjusted Gross Income Enter all amounts as positive numbers. Line 39: Interest on U.S. Government Obligations Enter the total amount of interest income (to the extent includible in federal adjusted gross income) derived from U.S. government obligations, which federal law prohibits states from taxing (for example, U.S. government bonds such as Saving Bonds Series EE or Series HH and U.S. Treasury bills or notes). For Series EE U.S. Savings Bonds, you are entitled to include on Line 39 only the amount of interest subject to federal income tax after exclusion of the amounts reported on federal Form In general, you will report the net taxable amount on federal Form 1040, Schedule B, or federal Form 1040A, Schedule 1. QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. SN 2012(6) PS 2005(2) Do not enter the amount of interest income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds, and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing interest income derived from these obligations and this interest income is taxable for Connecticut income tax purposes. Do not enter the amount of interest paid to you on any federal income tax refund. Line 40: Exempt Dividends From Certain Qualifying Mutual Funds Derived From U.S. Government Obligations Enter the total amount of exempt dividends received from a qualifying mutual fund that are derived from U.S. government obligations. A mutual fund is a qualifying fund if, at the close of each quarter of its taxable year, at least 50% of the value of its assets consists of U.S. government obligations. The percentage of dividends that are exempt dividends should be reported to you by the mutual fund. Do not enter the amount of dividend income derived from Federal National Mortgage Association (Fannie Mae) bonds, Government National Mortgage Association (Ginnie Mae) bonds, and Federal Home Loan Mortgage Corporation (Freddie Mac) securities. Federal law does not prohibit states from taxing income derived from these obligations, and this income is taxable for Connecticut income tax purposes. Example: A qualifying mutual fund pays a dividend of $100. Of the distribution, 55% is attributable to U.S. Treasury bills and 45% to other investments. The amount reported on Line 40 is $55. See Policy Statement 2005(2), Connecticut Income Tax on Bonds or Obligations Issued by the United States Government, by State Governments, or Municipalities. Line 41: Social Security Benefit Adjustment If you receive Social Security benefits subject to federal income tax, you may reduce or eliminate the amount of your benefits subject to Connecticut income tax. Your Social Security benefits are fully exempt from Connecticut income tax if your required filing status is single or married filing separately and the amount reported on Form CT-1040, Line 1, is less than $50,000; or married filing jointly, qualifying widow(er) with dependent child, or head of household and the amount reported on Form CT-1040, Line 1, is less than $60,000. If this is the case, enter on Line 41 the amount of federally taxable Social Security benefits reported on federal Form 1040, Line 20b, or federal Form 1040A, Line 14b. Your Social Security benefits are partially exempt from Connecticut income tax if your federal adjusted gross income is above the threshold for your filing status. If you used the worksheets in the instructions to federal Form 1040 or federal Form 1040A to calculate the amount of taxable Social Security benefits, complete the Social Security Benefi t Page 24

29 Social Security Benefit Adjustment Worksheet - Line 41 Enter the amount from Form CT-1040, Line If your filing status is single or married filing separately, is the amount on Line 1 $50,000 or more? Yes: Complete this worksheet. No: Do not complete this worksheet. Enter the amount of federally taxable Social Security benefits you reported on federal Form 1040, Line 20b, or federal Form 1040A, Line 14b, on Form CT-1040, Line 41. If your filing status is married filing jointly, qualifying widow(er), or head of household, is the amount on Line 1 $60,000 or more? Yes: Complete this worksheet. No: Do not complete this worksheet. Enter the amount of federally taxable Social Security benefits you reported on federal Form 1040, Line 20b, or federal Form 1040A, Line 14b, on Form CT-1040, Line 41. A. Enter the amount reported on your 2016 federal Social Security Benefits Worksheet, Line 1. A. If Line A is zero or less, stop here and enter 0 on Line 41. Otherwise, go to Line B. B. Enter the amount reported on your 2016 federal Social Security Benefits Worksheet, Line 9. However, if filing separately and you lived with your spouse at any time during 2016, enter the amount reported on Line 7 of your federal Social Security Benefits Worksheet. B. If Line B is zero or less, stop here. Otherwise, go to Line C. C. Enter the lesser of Line A or Line B. C. D. Multiply Line C by 25% (.25). D. E. Taxable amount of Social Security benefits reported on your 2016 federal Social Security Benefits Worksheet, Line 18. E. F. Social Security Benefit Adjustment - Subtract Line D from Line E. Enter the amount here and on Form CT-1040, Line 41. If Line D is greater than or equal to Line E, enter 0. F. Adjustment Worksheet, on Page 25, and enter the amount from Line F on Line 41. If you did not use these worksheets, but instead used worksheets in federal Publication 590 or federal Publication 915, see Announcement 2013(7), Taxability of Social Security Benefits for Connecticut Income Tax Purposes. If you are using a worksheet not from a federal publication, such as one you printed from a tax preparation program on your computer or one given to you by your tax preparer, you should verify that the line references from these worksheets are the same as the equivalent federal publication to be certain you are using the proper amounts. Line 42: Refunds of State and Local Income Taxes Enter the amount of taxable refunds of state and local income taxes reported on your federal Form 1040, Line 10. If federal Form 1040, Line 10, is blank or if you filed federal Form 1040A or 1040EZ, enter 0. Line 43: Tier 1 and Tier 2 Railroad Retirement Benefits and Supplemental Annuities If you received Tier 1 or Tier 2, or both, railroad retirement benefits or supplemental annuities during 2016, you may deduct the amount included in your federal adjusted gross income but only to the extent the benefits were not already subtracted from federal adjusted gross income on Line 41 QRCs for websites, DRS publications, telephone numbers, and addresses referenced on this page. AN 2013(7) (Social Security Benefit Adjustment). Enter the balance not already subtracted on Line 41 of Tier 1 and Tier 2 railroad retirement benefits reported on federal Form 1040, Line 16b or Line 20b, or federal Form 1040A, Line 12b or Line 14b. Likewise, enter the amount of railroad unemployment benefits, including sickness benefits paid by the Railroad Retirement Board (RRB) in lieu of unemployment benefits, to the extent included in your federal adjusted gross income. However, do not enter sickness benefits paid by the RRB resulting from an on-the-job injury because these benefits are not included in your federal adjusted gross income. Line 44: Military Retirement Pay Subtract income received as military retirement pay, to the extent included in federal adjusted gross income, if you are a retired member of the armed forces of the United States or the National Guard (retired military member) or if you are a beneficiary receiving survivor benefits under an option or election made by a deceased retired military member. Payments received by a former spouse of a retired military member, under a final decree of divorce, dissolution, annulment, or legal separation or a court ordered, ratified, or approved property settlement incident to a decree dividing military retirement pay, do not qualify for the military retirement pay exclusion. Line 45: 25% of Connecticut Teacher s Retirement Pay Subtract 25% of the income received from the Connecticut teacher s retirement system, provided you properly included such income in federal adjusted gross income for federal income tax purposes. Page 25